What is Identity Theft?

Knowing and understanding the definition of identity theft is one of the most important steps in protecting yourself from becoming a victim of identity theft. While safeguarding against identity theft, it is also important to familiarize yourself with the methods by which id thieves get their hands on personal information. Thieves can attain your personal information by using many different pilfering approaches.

Definition of Identity Theft

An identity theft definition is as follows: ID Theft occurs when a thief fraudulently uses stolen identity(s) to obtain credit and/or commit crimes. To further define identity theft and answer the question of “what is id theft?” it is best to start with the source – the thief. What exactly does an identity thief do to acquire personal information? Outlined in the 2007 strategic plan to combat id theft, the President’s Identity Theft Task Force describes seven ways in which id thieves rob information:

• Common Theft and Dumpster Diving: The thieves steal personal information left on papers in dumpsters or by robbing someone of their wallet or purse.
• Employee or Insider Theft: Someone working inside of information sensitive work environment gains access to personal information to use for themselves or are bribed into giving away information.
• Electronic Intrusions or Hacking: Thieves steal information by hacking into both personal and business computer networks.
• Social Engineering (Phishing, Malware/Spyware, and Pretexing): The information robbers use social interaction under false pretenses to con people into giving out information. Phishing involves fake emails, malware/spyware is a form of software that records keystrokes on one’s computer after opening a fake email, and pretexers pretend to be the customer as they contact financial institutions or telephone companies to try to get personal information.
• Stolen Media: Information theft occurs when the thief takes or gains access to electronic devices that hold personal information such as laptops or blackberrys.
• Failure to “Know Your Customer”: Data brokers sell information to the government (or similar entities) for law enforcement purposes. Id thieves can access this information if the data brokers fail in ensuring the customer is legitimate.
• Skimming: Thieves use a small hand-held device comparable to a valid credit card swiping device to get credit card account information. This can be accomplished easily when your credit card is given to an establishment’s employee who goes out of your sight. The thieves use this information to make purchases online or recreate a credit card to use at businesses.

Identity theft is more prevalent and costly than you might imagine. According to surveys taken by the Federal Trade Commission, direct and indirect annual costs to businesses, individuals and the government are in the billions. It is extremely important, now more than ever, to be aware of the definition of identity theft and the consequences of not having your most personal information protected.